LONDON MARKET.

Waikato Times, Volume 107, Issue 17991, 9 April 1930, Page 7

LONDON MARKET.

NEW, ZEALAND IMPORTS. BUTTER PRICES DOWN. LATEST ADVIGES RECEIVED. The reception accorded New Zealand frozen meat on the London market since January is described in latest advices received by Mr S. Lye, managing director of -the Waikato and Thames \ alley Calf By-products Company, from their London agents, Messrs Macpherson, Train and Go. “During the. last three months a wonderful clearance took place of all descriptions of imported frozen meat, stales the letter, which is dated March 4, “with the result that the first new season’s New Zealand lamb came on a bare market and realised prices beyond genera 1 expectation. It was generally expected that with the arrival of the s.s. Norfolk, carrying a considerably larger quantity, and other vessels with smaller quantities, that there would he some slight ‘give in prices, for which both buyers and sellers were prepared. It was not anticipated, however, that there would be anything like the collapse in the market which has taken place during the past two weeks. In our opinion, there was no justification for putting the market down about 2d per lb in two weeks. The general consumptive demand for lamb -throughout the country is good and just as many iambs would have been sold at 10 d per lb as have been sold during the present week at 9-Jd. A World Shortage. “In face of extremely low priees in other primary products, -such as butter, cheese and wool, buyers are naturally nervous about prevailing prices lor meat, but whereas in dairy produce and wool the supply aud the production exceed the demand, the reverse is the case in meat. We have a world shortage of beef and pork, with both articles selling at very high prices. We are very short of mutton, and one would think that iii these circumstances lamb ought to do well. We arc, however, witnessing at present an orgy of pricecutting and pressure to sell, which has completely upset the market and destroyed the confidence of buyers. We hope more stable conditions will soon be restored and are confident that if prices could only be kept steady for a week values would settle down at levels which would he profitable to producers. At the time of writing it is difficult to say what is going to happen, as all sorts of prices are being taken and it is impossible to forecast what the outemoe will be." Dairy Produce.

In another letter under the same date the London firm states:

“Butler and cheese prices in Great Britain are at present sharing in the world depression, which seems to have affected prices of most primary products. An exceptionally mild winter in Europe, a big production in New Zealand, and also a greatly increased export from Australia has resulted in the supply of butter exceeding the , demand.

“We can only recall two or three occasions since the war when butter has fallen to such a low level of price. Each reduction, however, brings us nearer the time when confidence will be restored and buyers will feel justified in abandoning their present ‘hand-to-mouth’ policy, and operating with more freedom. While we see no immediate prospect of improvement, the market demands careful watching in view of the inevitable reaction in prices which must come sooner or later.

“Cheese is affected by similar economic conditions, but at current prices it offers attractive values compared with meat and bacon and we look for an improving consumptive demand at present very reasonable prices.”